Riding Mega Trends 

1.  The similarities between the financial planning and employee benefits industries make a merger between both inevitable, especially in light of The Financial Services Modernization Act of 1999. This will create a huge opportunity for knowledgeable advisors, as clients are going to need help navigating through all of the changes. 

2.  The web is becoming the basic operating platform for the emerging deregulated financial service industries. Eventually, consumers will have permanent, personalized, secure websites (BenefitsPassports^SM), where they will be able to access all of their personal financial planning information (including employee benefits, credit card information, banking, securities, etc). Brokers/Consultants will move into the role of Advisors, which means that credentials will be critical. Sophisticated financial planning for high net-worth individuals, contrary to the opinion of some traditionalists, will also increasingly utilize web technology.

3.  The trend of Americans getting many of their financial products through their employer will accelerate via cafeteria-style employee benefit programs. Many employer-paid welfare benefit programs will shift to a "defined contribution" approach, where employees will be given an allowance to spend as they wish on their benefit programs (double digit medical inflation will help drive this trend). On-line tools will help employees make benefit selections within the context of their own financial plans, which will be automatically updated via the web. Work-site marketing will explode.

4.  Independent Employee Benefit Advisors will continue to dominate the individual, small, and mid-size employer marketplace. While in the past, specialists in Financial Planning, Asset Management, Executive Compensation, Employer-Paid Employee Benefits, and Voluntary Employee Benefits have not traditionally worked together-- that will soon change. These specialists are now looking for cross-selling and up-selling opportunities, as well as more effective ways to service their clients. UBA will facilitate networking and educational opportunities among the specialists in this new era of deregulated financial services.

5. Financial Product Vendors (especially insurance companies) have found it very difficult to "disintermediate" the professional advisor. People value independent, personalized financial advice, especially with regards to Employee Benefits and high-end Financial Planning. 

As the insurance companies, banks and securities firms rush to take market share from each other, traditional roles will blur. The Financial Services Modernization Act of 1999 will drive this trend. This deregulation, the growing ubiquity of the web, and the vast numbers of people not being served by the current system will cause the Financial Planning and Employee Benefits industries to merge.

The majority of people in the U.S. will eventually do their financial planning through their Employers, which will include purchasing supplemental products via payroll deduction.  Voluntary supplemental products sold through Employers will include life, disability, long-term care, automobile, homeowners, annuities, etc. Individuals that do not buy through their employers will likely do so through a bank, as in Europe.

CFP's or ChFC's and other financial planners will serve primarily high net-worth/ high-income individuals. Employers will become the main channels for providing "basic financial planning" for low and mid-income individuals, who are currently being under-served by traditional broker/consultants. Other employees who need sophisticated financial or estate planning will be "triaged" via their employer's web sites toward credentialed financial planners or estate planners.

UBA and its Members are at the center of these converging mega-trends. As trusted navigators of the new Financial Services World, UBA member firms are in a unique position to take advantage of this historic opportunity. 

By providing creative financial strategies and supportive technologies, UBA is positioning to be one of the major, independent channels in the $1.8 trillion employee benefits and financial planning industries. We hope you will consider joining us.

>> If you are ready to become a UBA member, have more questions, or would like additional information, please CLICK HERE to schedule a teleconference tour with one of our Officers.